—Hugh Leask
London-based asset manager Permira Debt Managers Group Holdings is preparing to come to market with its first collateralized loan obligation, a €300 million ($433.8 million) cash deal arranged by The Royal Bank of Scotland.
Repeated calls to both firms in London were not returned immediately. But the deal, known as PDM CLO 1, is believed to be coming to market next week, according to market chatter. The collateral on the deal is a managed portfolio of European leveraged loans, around 35% of which are located in the U.K. The portfolio breaks down as 85% senior secured loans and 15% mezzanine and second lien loans. Standard & Poor’s analysts in London said Permira is expected to have bought 90% of the target par amount before the deal closes.